Why You Should Consider Legal Expenses Cover

rugbyplayer_200_175Have you ever had to deal with a disgruntled employee who then takes you to a tribunal? Or had the dubious pleasure of a visit from HMRC at your workplace, requesting information about income, payslips and the office party costs last Christmas? Perhaps you’ve consulted a solicitor about problems with your landlord?

If not, congratulations! But before you decide to go for an early bath, read on……

All the above scenarios have the same thing in common: they are time consuming and potentially expensive.

Is Legal Expenses cover the answer?  On paper it certainly sounds as if it could be and because it is now widely offered, what’s the problem?  Why shouldn’t you say yes, yes, yes!

As with all good things (other than free tickets to the Rugby World Cup Final or a date with Prince Harry) one should approach with caution and make sure it stands up to scrutiny.  Used in the correct way, it will be effective and reinforce or possibly re-kindle your belief that insurers DO pay out.

What you need to know:

  • At the very first hint of a problem, check your policy or call your broker for advice. Do not think it will resolve itself.
  • Do not consult a solicitor, accountant or any other fee charging professional until you have checked you are covered and your insurer gives you the green light to incur costs. You probably won’t get paid if you don’t.
  • Be realistic. If you’ve made a mistake or haven’t followed protocol, it’s unlikely your insurer will agree to pay. Imagine it’s your money you are spending; it will make you less likely to allow emotions to rule the situation.  Don’t hark back to the ‘good old days’ when you could just sack someone on the spot.
  • The golden rule: there must be a more than reasonable chance of success – and it does differ from company to company – this may be 50% or as much as 75%.  Your insurer’s legal team will decide. And their decision is final.
  • Make sure the cover is right for what you do. Legal Expenses policies vary in what they provide and clients rarely read the policy wording until there is a potential claim.